India online gaming faces money laundering risks, Digital India Foundation warns

A recent report by the Digital India Foundation (DIF) titled “Combating Money Laundering in the Online Gaming Ecosystem” has raised concerns about fraud, money laundering, and terrorism financing in India's expanding online gaming industry. 

The legal real-money gaming sector, with around 90 million daily players, has grown 28% from 2020 to 2023 and is projected to generate $7.5 billion by 2029. However, the DIF warns that vulnerabilities in this ecosystem threaten financial integrity, particularly due to illegal gambling practices.

Traditional media revenues have declined from 76% in 2019 to 57% in 2023, while digital media—including online gaming—has surged. Online gaming revenue reached USD 3.1 billion in 2023 and is expected to account for over 50% of the Media & Entertainment sector's growth soon. Factors driving this growth include affordable internet access and rising incomes.

Despite its potential, the sector faces challenges such as user safety and cybersecurity threats, with financial fraud being a significant concern. India boasts over 568 million gamers and 9.5 billion gaming app downloads in 2023, highlighting its immense market potential. The DIF calls for urgent regulatory measures to address these issues and protect the industry’s future.